Australia: S&P/ASX 200 (.AXJO) poised to edge higher

Australia: S&P/ASX 200 (.AXJO) poised to edge higher

Australia: S&P/ASX 200 (.AXJO) poised to edge higher

The Australian sharemarket lifted for a second session on the back of strong performances from the major banks and other financial stocks.

The S&P/ASX 200 index rose 29.2 points, or 0.5 per cent, to 6297.7, falling from a 10-year high earlier in the session.

ASX futures had been indicating a flat open to trading but following a drop soon after the open, the market rallied on the back of strong performances from the major banks and Suncorp.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 6,398.80.

The projected lower bound is: 6,209.12.

The projected closing price is: 6,303.96.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 64.0183. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.53. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 33 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 18 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 29.200 at 6,297.700. Volume was 5% below average (neutral) and Bollinger Bands were 59% narrower than normal.

Open High Low Close Volume___
6,268.5006,313.6006,258.4006,297.700 522,140,096

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 6,270.33 6,189.44 6,029.33
Volatility: 8 10 10
Volume: 529,257,248 551,611,072 552,195,392

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

S&P/ASX 200 is currently 4.5% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 5 periods.

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